SEOUL, Oct. 23 (Korea Bizwire) — Hyundai Heavy Industries Co., a major shipyard in South Korea, said Monday that it has clinched a deal worth 450 billion won (US$397 million) to build five very large ore carriers (VLOCs).
Under the deal with Polaris Shipping Co., Hyundai Heavy will hand over the vessels in phases. The deal is part of last month’s contract with the same shipping firm, which had an option by the shipyard to build more ships going forward.
In the deal worth 908 billion won, Hyundai Heavy will build the 10 325,000-ton vessels in phases by 2021.
Polaris Shipping has clinched a mega-deal with Vale SA, the world’s largest iron ore producer, to transport iron ore.
So far this year, Hyundai Heavy has bagged orders valued at $6.7 billion to build 110 ships. Its annual order target for the year is $7.5 billion.
South Korean shipyards, like others around the world, have been hit hard by a drop in demand for new ships in the wake of sluggish global economic growth, as well as low crude and gas prices in the past few years.
Local shipyards have since laid off workers through voluntary retirement programs, forced employees to take leave and even requested cuts in salaries to stay afloat.